Tag Archives: Allegiant Air

Allegiant announces 22 new routes

Allegiant Air today announced 22 new nonstop routes, expanding service in 25 cities across the United States.

The new routes toย Destin-Fort Walton Beach Airportย (VPS) inย Floridaย include:

  1. Minneapolis, Minnesotaย viaย Minneapolis-Saint Paul International Airportย (MSP)ย โ€“ beginningย Oct. 1, 2021ย with one-way fares as low asย $49.*
  2. Las Vegas, Nevadaย viaย McCarran International Airportย (LAS) โ€“ย beginningย Oct. 7, 2021ย with one-way fares as low asย $39.*

The new routes toย Phoenix-Mesa Gateway Airportย (AZA) inย Arizonaย include:

  1. Amarillo, Texasย viaย Rick Husband Amarillo International Airportย (AMA) โ€“ย beginningย Nov. 18, 2021ย with one-way fares as low asย $39.*
  2. Flint, Michiganย viaย Flint Bishop International Airportย (FNT) โ€“ย beginningย Nov. 18, 2021ย with one-way fares as low asย $59.*
  3. Springfield, Illinoisย viaย Abraham Lincoln Capital Airportย (SPI)ย โ€“ beginningย Nov. 18, 2021ย with one-way fares as low asย $59.*
  4. Tulsa, Oklahomaย viaย Tulsa International Airportย (TUL)ย โ€“ beginningย Nov. 18, 2021ย with one-way fares as low asย $49.*
  5. Orange County, Californiaย viaย John Wayne Airportย (SNA)ย โ€“ beginningย Nov. 19, 2021ย with one-way fares as low asย $39.*
  6. Spokane, Washingtonย viaย Spokane International Airportย (GEG) โ€“ย beginningย Nov. 22, 2021ย with one-way fares as low asย $39.*
  7. Minneapolis,ย Minneapolisย viaย Minneapolis-Saint Paul International Airportย (MSP)ย โ€“ beginningย Nov. 24, 2021ย with one-way fares as low asย $49.*

The new routes toย Palm Springs International Airportย (PSP) inย Californiaย include:

  1. Des Moines, Iowaย viaย Des Moines International Airportย (DSM) โ€“ย beginningย Nov. 18, 2021ย with fares as low asย $59.*
  2. Indianapolis, Indianaย viaย Indianapolis International Airportย (IND) โ€“ย beginningย Nov. 18, 2021ย with fares as low asย $59.*
  3. Provo, Utahย viaย Provo Airportย (PVU) โ€“ย beginningย Nov. 19, 2021ย with fares as low asย $39.*

The new routes toย Austin-Bergstrom International Airportย (AUS)ย inย Texasย include:

  1. Punta Gorda, Floridaย viaย Punta Gorda Airportย (PGD) โ€“ย beginningย Nov. 18, 2021ย with one-way fares as low asย $49.*
  2. Palm Beach, Floridaย viaย Palm Beach International Airportย (PBI) โ€“ย beginningย Nov. 19, 2021ย with fares as low asย $49.*

The new routes toย Minneapolis-Saint Paul International Airportย (MSP) inย Minnesotaย include:

  1. Destin, Floridaย viaย Destin-Fort Walton Beach Airportย (VPS)ย โ€“ beginningย Oct. 1, 2021ย with one-way fares as low asย $49.*
  2. Mesa, Arizonaย viaย Phoenix-Mesa Gateway Airportย (AZA) โ€“ beginningย Nov. 24, 2021ย with one-way fares as low asย $49.*

The new routes toย Punta Gorda Airportย (PGD)ย inย Floridaย include:

  1. Bentonville, Arkansasย viaย Northwest Arkansas National Airportย (XNA) โ€“ย beginningย Nov. 17, 2021ย with one-way fares as low asย $49.*
  2. Austin, Texasย viaย Austin-Bergstrom International Airportย (AUS) โ€“ย beginningย Nov. 18, 2021ย with fares as low asย $49.*

The new routes toย Provo Airportย (PVU) inย Utahย include:

  1. Houston, Texasย viaย William P. Hobby Airportย (HOU) โ€“ย beginningย Nov. 18, 2021ย with one-way fares as low asย $39.*
  2. Palm Springs, Californiaย viaย Palm Springs International Airportย (PSP) โ€“ย beginningย Nov. 19, 2021ย with fares as low asย $39.*

The new routes toย John Wayne Airportย (SNA) inย Californiaย include:

  1. Mesa, Arizonaย viaย Phoenix-Mesa Gateway Airportย (AZA) โ€“ย beginningย Nov. 19, 2021ย with fares as low asย $39.*
  2. Sioux Falls, South Dakotaย viaย Sioux Falls Regional Airportย (FSD) โ€“ย beginningย Nov. 19, 2021ย with one-way fares as low asย $49.*

The new routes toย Sioux Falls Regional Airportย (FSD) inย South Dakotaย include:

  1. Orange County, Californiaย viaย John Wayne Airportย (SNA)ย โ€“ beginningย Nov. 19, 2021ย with one-way fares as low asย $49.*
  2. Fort Lauderdale, Floridaย viaย Fort Lauderdale-Hollywood International Airportย (FLL) โ€“ beginningย Dec. 15, 2021ย with one-way fares as low asย $59.*

The new routes toย Sarasota Bradenton International Airportย (SRQ) inย Floridaย include:

  1. Cedar Rapids, Iowaย viaย The Eastern Iowa Airportย (CID) โ€“ beginningย Nov. 19, 2021ย with one-way fares as low asย $49.*
  2. Tulsa, Oklahomaย viaย Tulsa International Airportย (TUL)ย โ€“ beginningย Dec. 15, 2021ย with one-way fares as low asย $49.*

The new routes toย Fort Lauderdale-Hollywood International Airportย (FLL) inย Floridaย include:

  1. Sioux Falls, South Dakotaย viaย Sioux Falls Regional Airportย (FSD) โ€“ย beginningย Dec. 15, 2021ย with fares as low asย $59.*
  2. Harrisburg, Pennsylvaniaย viaย Harrisburg International Airportย (MDT) โ€“ย beginningย Dec. 15, 2021ย with fares as low asย $59.*
  3. Peoria, Illinoisย viaย Peoria International Airportย (PIA) โ€“ย beginningย Dec. 15, 2021ย with fares as low asย $59.*

ALC leases ten used Airbus A320s to Allegiant Air

Air Lease Corporation (ALC) announced on July 28 long-term lease placements for ten used Airbus A320-200 aircraft with Allegiant.

The aircraft are scheduled to be delivered to the airline beginning in the Fall 2021 through Summer 2022.

Allegiant reports a profit in the second quarter

Allegiant Travel Company (Allegiant Air) today reported the following financial results for the second quarter 2021, as well as comparisons to the prior years:

Consolidated Three Months Endedย June 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Total operating revenue $ 472.4 $ 133.3 $ 491.8 254.3 (3.9)
Total operating expense 333.6 246.6 383.7 35.3 (13.1)
Operating income (loss) 138.9 (113.3) 108.1 222.6 28.4
Income (loss) before income taxes 122.6 (146.4) 91.8 183.7 33.5
Net income (loss) 95.0 (93.1) 70.5 202.1 34.7
Diluted earnings (loss) per share $ 5.49 $ (5.85) $ 4.33 193.8 26.8
Six Months Endedย June 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Total operating revenue $ 751.6 $ 542.5 $ 943.4 38.5 (20.3)
Total operating expense 588.1 766.8 744.2 (23.3) (21.0)
Operating income (loss) 163.5 (224.3) 199.2 172.9 (17.9)
Income (loss) before income taxes 131.2 (277.1) 165.7 147.4 (20.8)
Net income (loss) 101.9 (126.1) 127.7 180.8 (20.2)
Diluted earnings (loss) per share $ 6.04 $ (7.93) $ 7.84 176.2 (23.0)
Consolidated – adjusted Three Months Endedย June 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Adjusted operating expenseย (1) (2) $ 378.6 $ 239.9 $ 383.7 57.8 (1.3)
Adjusted operating income (loss)ย (1) (2) 93.9 (106.6) 108.1 188.1 (13.1)
Adjusted income (loss) before income taxesย (1) (2) 77.6 (119.9) 91.8 164.7 (15.5)
Adjusted net income (loss)ย (1) (2) 60.0 (94.7) 70.5 163.4 (14.9)
Adjusted diluted earnings (loss) per shareย (1) (2) $ 3.46 $ (5.96) $ 4.33 158.1 (20.1)
Six Months Endedย June 30, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Adjusted operating expenseย (1) (2) $ 716.7 $ 594.0 $ 744.2 20.7 (3.7)
Adjusted operating income (loss)ย (1) (2) 34.9 (51.5) 199.2 167.8 (82.5)
Adjusted income (loss) before income taxesย (1) (2) 2.6 (77.7) 165.7 103.3 (98.4)
Adjusted net income (loss)ย (1) (2) 2.0 (61.4) 127.7 103.3 (98.4)
Adjusted diluted earnings (loss) per shareย (1) (2) $ 0.12 $ (3.87) $ 7.84 103.1 (98.5)
(1) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs (PSPs), and profit sharing bonus accruals since the operating margin threshold to accrue these bonuses would not have been met for the six months endedย June 30, 2021ย without the benefits of the PSPs
(2) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information

“The second quarter marked the return of leisure demand to pre-pandemic levels,” statedย Maurice J. Gallagher, Jr., chairman and CEO ofย Allegiant Travel Company. “Earnings per share came in atย $5.49ย on a year over two-year revenue decline of just 3.9 percent, with total revenue in June exceeding 2019 levels. We made significant progress towards achieving pre-pandemic unit revenues withย TRASM ofย 10.36 centsย (on a load factor of 70.8 percent), up 50 percent from the first quarter. The revenue team did an outstanding job optimizing loads and unit revenues during the quarter. This strong revenue performance, coupled with continued cost discipline as evidenced by our adjusted CASM, excluding fuelย (3), ofย 5.86 cents, led to our adjusted operating margin(1)ย of 20 percent for the quarter.

“These results suggest we are close if not back to ‘normal’, where we were in the early days of 2020.ย  We were the first domestic carrier to grow capacity from 2019 levels. Given the reduced operations of the past year, this ramp up came with challenges – delays in infrastructure preparedness at some of our airports, labor constraints, and severe weather. Our operations team has done a great job reacting and adapting to these headwinds. During the third quarter we will continue our growth – capacity will increase nearly 20 percent, year over two-year.

“Last year at this time I stressed the importance of strengthening our liquidity to both weather the storm and position us favorably for growth post-pandemic. The team has done just that. We currently haveย $1.2 billionย of cash on hand, up 79 percent from a year ago. Our total net debt continues to improve at underย $400 million, a 52 percent reduction from a year ago. This strong liquidity leaves us well positioned for future growth. The fleet team has executed agreements to acquire 21 additional aircraft since the beginning of the year. These airplanes will all be placed into service by the end of 2022, thus supporting the remainder of this year as well as most of next year’s growth plan.

“The next year will be an exciting one for the company. We are preparing the launch of our new loyalty program in the coming months, Allways Rewards. This program will enable us to further enhance the customer experience. We also recently announced a new partnership withย Live Nationย venues, Ticketmaster and music festivals – kicking off a multi-year, strategic relationship with the world’s premier live entertainment company. This partnership will ultimately unlock another layer of leisure offerings, further enhancing a one-stop shop for our customer. Finally, we will continue to grow and expand our network, connecting more customers to world-class vacation destinations.

“I cannot thank our 4,000 team members enough for their continued efforts in supporting growth while prioritizing customer safety. Ramping up the operation the past few months has been a challenge, but our team members continue to work hard to support the operation. I could not be more proud of their efforts.”

Second Quarter 2021 Results

  • GAAPย earnings per shareย ofย $5.49
    • Adjusted earnings per share(1) (2) (3)ย ofย $3.46
  • Consolidated EBITDA(2) (3)ย ofย $183.3 millionย yielding an EBITDA margin of 38.8 percent
    • Adjusted EBITDA(1) (2) (3)ย ofย $138.3 millionย yielding an adjusted EBITDA margin of 29.3 percent
  • Total June revenueย exceeded June of 2019
  • Total operating revenueย wasย $472.4 million, up 69.3 percent from the first quarter and down 3.9 percent when compared to the second quarter of 2019
    • Sustainedย yield strengthย throughout the quarter with yield up 7.8 percent year over two-year onย scheduled service capacityย increases of 4.5 percent
  • Total average fareย ofย $126.82, up 10.8 percent year over two-year
    • Total ancillary average fareย $64.25, up 14.6 percent from 2019 driven primarily by bundled air ancillary offerings, rental car rate strength, and increased cobrand activity
  • TRASMย ofย 10.36 cents, down 5.6 percent year over two-year, and up 50.3 percent from the first quarter 2021
  • Load factorย of 70.8%, up nearly 16 percentage points from the first quarter
  • Record-breaking quarter forย co-brand activityย with June new cardholder acquisitions becoming the highest month in the program’s history and the highest month for cardholder spend, beating the prior monthly spend record by more than 40 percent
    • May marked the third highest acquisition of new cardholders in program history
  • Adjusted operating expense(1) (2) (3)ย ofย $378.6 million, down 1.3 percent from second quarter 2019 on total system capacity increase of 3.3 percent
    • Adjusted Operating CASM, excluding fuelย (3)ย ofย 5.86 cents, flat when compared to the second quarter of 2019
  • Adjusted operating margin(1)ย of 19.9 percent
  • Expanded the networkย by adding 29 new routes with four new cities and complementary service inย Phoenixย with the addition ofย Phoenix Sky Harbor International Airport, bringing total routes served to 596 and 134 cities
  • Ranked number two among US airlines within the 2021ย Airline Quality Ranking

(1) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs, and profit sharing bonus accruals since the operating margin threshold to accrue these bonuses would not have been met for the six months endedย June 30, 2021ย without the benefits of the PSPs
(2) Denotes a non-GAAP financial measure
(3) Refer to the Non-GAAP Presentation section within this document for further information

Balance Sheet, Cash and Liquidity

  • Totalย cash and investmentsย atย June 30, 2021ย wereย $1.2 billion, up fromย $728 millionย atย March 31, 2021
    • Cash from operationsย ofย $237 million, including the benefit from the payroll support program and federal income tax refund ofย $12 millionย related to prior period tax net operating losses
      • Adjusted cash from operations ofย $176 million, which excludes theย $49.2 millionย net benefit from the PSPs, andย $12 millionย federal tax refund
    • Debtย principal paymentsย ofย $48 millionย during the quarter
      • Includes prepayment of debt secured by five aircraft
    • $65 millionย used for cashย capital expenditures
    • Raisedย $335 millionย fromย issuance of 1.6 million sharesย at a price ofย $219ย per share during the second quarter
  • Second quarterย interest expenseย ofย $17 million, down 20 percent year over two-year
  • Expect to receiveย $136 millionย in federal tax refundsย during the second half of the year related to 2020 net operating losses
  • Air traffic liabilityย atย June 30, 2021ย wasย $437 million
    • Balance related to future scheduled flights isย $305 million
    • Balance related to travel vouchers issued for future use isย $132 million, a 26 percent reduction fromย March 31, 2021

Capital Expenditures

  • Second quarter capital expendituresย related to aircraft, engines and induction costs wereย $46 millionย andย $19 millionย in other airline capital expenditures
  • Second quarter capital expenditures related toย deferred heavy maintenanceย wereย $23 million
  • Executed agreements to acquire 21 incremental aircraft year-to-date
Guidance, subject to revision Previous Current
Third Quarter 2021 guidance
System ASMs – year over two-year change(1) 16.0 to 20.0%
Scheduled Serviceย  ASMs – year over two-year change(1) 16.0 to 20.0%
Total operating revenue – year over two-year changeย (1) Up 3.5% to 7.5%
Fuel cost per gallon $ 2.11
Full year 2021 guidance
CAPEX
Aircraft, engines and induction costs (millions) $115ย toย $125 $115ย toย $125
Capitalized Airbus deferred heavy maintenance (millions) $50ย toย $60 $50ย toย $60
Other capital expenditures (millions) $40ย toย $50 $40ย toย $50
Interest expense $65ย toย $70 $65ย toย $70
Recurring principal payments(2) $170ย toย $180 $170ย toย $180
(1) Year over two-year percentage changes compare 2021 to 2019
(2) Excludesย $111 millionย of principal repayments related to the maturity of our revolving credit facility and the refinancing of three A320 aircraft during the first quarter 2021

Aircraft Fleet Plan by End of Period

Aircraft – (seats per AC) 2Q21 3Q21 YE21
A319 (156 seats) 35 35 35
A320 (177 seats) 23 23 22
A320 (186 seats) 45 49 51
Total 103 107 108
The table above is provided based on the company’s current plans and is subject to change

Allegiant announces 23 new nonstop routes

"Winter the Dolphin", promotional 2018 livery for Clearwater Marine Aquarium

Allegiant Airย today announces 23 new nonstop routes for fall vacation and holiday travel to destinations across the country, including 10 routes to four new cities:ย Melbourne, Fla.;ย Amarillo, Texas;ย Washington, D.C.ย andย Minneapolis.

The new routes toย Austin, Texasย viaย Austin-Bergstrom International Airportย (AUS)ย include:

  1. Amarillo, Texasย viaย Rick Husband Amarillo International Airportย (AMA)ย โ€“ beginningย Nov. 18, 2021ย with one-way fares as low asย $39.*
  2. Louisville, Kentuckyย viaย Louisville International Airportย (SDF) โ€“ย beginningย Nov. 18, 2021ย with one-way fares as low asย $39.*
  3. Orange County, Californiaย viaย John Wayne Airportย (SNA) โ€“ย beginningย Nov. 18, 2021ย with one-way fares as low asย $39.*
  4. Provo, Utahย viaย Provo Airportย (PVU) โ€“ย beginningย Nov. 18, 2021ย with one-way fares as low asย $39.*
  5. Sioux Falls, South Dakotaย viaย Sioux Falls Regional Airportย (FSD) โ€“ย beginningย Nov. 18, 2021ย with one-way fares as low asย $39.*
  6. Springfield, Missouriย viaย Springfield-Branson National Airportย (SGF) โ€“ย beginningย Nov. 18, 2021ย with one-way fares as low asย $39.*
  7. Tulsa, Oklahomaย viaย Tulsa International Airportย (TUL) โ€“ย beginningย Nov. 18, 2021ย with one-way fares as low asย $39.*

The new nonstop routes toย Amarillo, Texasย viaย Rick Husband Amarillo International Airportย (AMA)ย include:

  1. Las Vegas, Nevadaย viaย McCarran International Airportย (LAS) โ€“ beginningย Oct. 14, 2021ย with one-way fares as low asย $39.*
  2. Austin, Texasย viaย Austin-Bergstrom International Airportย (AUS)ย โ€“ beginningย Nov. 18, 2021ย with fares as low asย $39.*

The new nonstop routes toย Washington, D.C.ย viaย Dulles International Airportย (IAD)ย include:

  1. Jacksonville, Floridaย viaย Jacksonville International Airportย (JAX)ย โ€“ beginningย Nov. 19, 2021ย with one-way fares as low asย $39.*
  2. Sarasota, Floridaย viaย Sarasota Bradenton International Airportย (SRQ)ย –ย  beginningย Dec. 18, 2021ย with fares as low asย $39.*

The new nonstop routes toย Melbourne, Fla.ย viaย Melbourne Orlando International Airportย (MLB)ย include:

  1. Pittsburgh, Pennsylvaniaย viaย Pittsburgh International Airportย (PIT) โ€“ beginningย Nov. 11, 2021ย with one-way fares as low asย $49.*
  2. Nashville, Tennesseeย viaย Nashville International Airportย (BNA)ย โ€“ beginningย Nov. 18, 2021ย with fares as low asย $39.*
  3. Concord, North Carolinaย viaย Concord-Padgett Airportย (USA)ย โ€“ beginningย Nov. 18, 2021ย with fares as low asย $39.*

The new nonstop routes toย Minneapolis, Minn.ย viaย Minneapolis-Saint Paul International Airportย (MSP)ย include:

  1. Asheville, North Carolinaย viaย Asheville Regional Airportย (AVL)ย โ€“ beginningย Oct. 7, 2021ย with fares as low asย $49.*
  2. Punta Gorda, Floridaย viaย Punta Gorda Airportย (PGD) โ€“ beginningย Oct. 8, 2021ย with one-way fares as low asย $49.*
  3. Palm Beach, Floridaย viaย Palm Beach International Airportย (PBI)ย – beginningย Oct. 7, 2021ย withย one-way fares as low asย $49.*

The new nonstop routes toย Punta Gorda, Fla.ย viaย Punta Gorda Airportย (PGD)ย include:

  1. Minneapolis, Minnesotaย viaย Minneapolis-Saint Paul International Airportย (MSP) โ€“ beginningย Oct. 8, 2021ย with one-way fares as low asย $49.*
  2. Springfield, Missouriย viaย Springfield-Branson National Airportย (SGF)ย โ€“ beginningย Nov. 19, 2021ย with fares as low asย $49.*

The new nonstop routes toย Orange County, Calif.ย viaย John Wayne Airportย (SNA)ย include:

  1. Eugene, Oregonย viaย Eugene Airportย (EUG) โ€“ beginningย Oct. 8, 2021ย with one-way fares as low asย $39.*
  2. Austin, Texasย viaย Austin-Bergstrom International Airportย (AUS)ย โ€“ beginningย Nov. 18, 2021ย with fares as low asย $39.*

The new routes toย Nashville, Tenn.ย viaย Nashville International Airportย (BNA)ย include:

  1. Palm Springs, Californiaย viaย Palm Springs International Airportย (PSP)ย โ€“ beginningย Nov. 17, 2021ย with one-way fares as low asย $49.*
  2. Melbourne, Floridaย viaย Melbourne Orlando International Airportย (MLB)ย โ€“ beginningย Nov. 18, 2021ย with one-way fares as low asย $39.*
  3. Jacksonville, Floridaย viaย Jacksonville International Airportย (JAX) โ€“ beginningย Nov. 18, 2021ย with one-way fares as low asย $39.*

The new nonstop routes toย Jacksonville, Fla.ย viaย Jacksonville International Airportย (JAX)ย include:

  1. Nashville, Tennesseeย viaย Nashville International Airportย (BNA)ย โ€“ beginningย Nov. 18, 2021ย with fares as low asย $39.*
  2. Dulles, Virginiaย viaย Dulles International Airportย (IAD) โ€“ beginningย Nov. 19, 2021ย with one-way fares as low asย $39.*

The new nonstop route toย Las Vegasย viaย McCarran International Airportย (LAS)ย fromย Amarillo, Texasย viaย Rick Husband Amarillo International Airportย (AMA)ย beginsย Oct. 14, 2021ย with fares as low asย $39.*

Theย new nonstop route fromย Houston, Texasย viaย William P. Lobby Airportย toย Bentonville, Ark.ย viaย Bentonville Municipal Airportย (XNA)ย begins Nov.19, 2021 withย one-way fares as low asย $39.*

The new nonstop route fromย Des Moines, Iowaย viaย Des Moines International Airportย (DSM) toย Fort Lauderdale, Fla.ย viaย Fort Lauderdale-Hollywood International Airportย (FLL)ย begins Oct. 6, 2021ย with one-way fares as low asย $69.*

The new nonstop route fromย Wichita, Kansasย viaย Wichita Dwight D. Eisenhower National Airportย (ICT) toย St. Petersburg, Fla.ย viaย St. Pete-Clearwater International Airportย (PIE)ย beginsย Nov. 19, 2021ย with one-way fares as low asย $49.*

Top Copyright Photo: Allegiant Air Airbus A320-214 N271NV (msn 2932) (Winter the Dolphin) LAX (Michael B. Ing). Image: 954240.

Allegiant Air aircraft slide show:

Allegiant sees a leisure travel demand recovery for May and into this month

Allegiant Travel Company has reported preliminary passenger traffic results for May 2021.ย 

“We have been pleased to see leisure demand recovery persist throughout May and into early June,” statedย Drew Wells, senior vice president, revenue. “Average daily bookings since the beginning of March have continued to exceed 2019 levels. May saw a nearly five-point increase in load factor when compared with April, and peakย Memorial Dayย travel days saw load factors of roughly 80 percent. We anticipate June loads will be in excess of 75 percent on year-over-two-year capacity increases of roughly 15 percent. We continue to expect second quarter scheduled service revenue, excluding fixed fee and other revenue, to be down six to ten percent when compared with the second quarter of 2019.”

Scheduled Service โ€“ Year Over Two-Year Comparison
May 2021 May 2019 Change
Passengers 1,040,590 1,269,429 (18.0%)
Revenue passenger miles (000) 888,735 1,093,781 (18.7%)
Available seat miles (000) 1,293,704 1,308,911 (1.2%)
Load factor 68.7% 83.6% (14.9pts)
Departures 8,939 9,086 (1.6%)
Average stage length (miles) 834 843 (1.1%)

Total System* – Year Over Two-Year Comparison
May 2021 May 2019 Change
Passengers 1,046,813 1,281,742 (18.3%)
Available seat miles (000) 1,326,062 1,357,963 (2.3%)
Departures 9,202 9,416 (2.3%)
Average stage length (miles) 831 844 (1.5%)

 

Scheduled Service โ€“ Year Over Year Comparison
May 2021 May 2020 Change
Passengers 1,040,590 362,528 187.0%
Revenue passenger miles (000) 888,735 326,748 172.0%
Available seat miles (000) 1,293,704 690,624 87.3%
Load factor 68.7% 47.3% 21.4pts
Departures 8,939 4,654 92.1%
Average stage length (miles) 834 856 (2.6%)

 

Total System* – Year Over Year Comparison
May 2021 May 2020 Change
Passengers 1,046,813 365,519 186.4%
Available seat miles (000) 1,326,062 710,712 86.6%
Departures 9,202 4,795 91.9%
Average stage length (miles) 831 855 (2.8%)

*Total system includes scheduled service and fixed fee contract.ย System revenue passenger miles and system load factor are not useful statistics as system available seat miles include both ASMs flown by fixed fee flying as well as non-revenue producing repositioning flights used for operational needs.ย Fixed fee flying is better measured through dollar contribution versus operational statistics.

Preliminary Financial Results
$ per gallon
May 2021ย estimated average fuel cost per gallon โ€“ system $2.02

Allegiant Air aircraft slide show:

Allegiant announces six new routes for the summer including Phoenix

Ex EI-DSD, delivered on January 11, 2018

Allegiant Air today announced six new nonstop routes for summer and fall vacation travel to premier destinations in Florida and the west. The new offerings include two routes to Phoenix Sky Harbor International Airport (PHX), which Allegiant will serve for the first time in its history.ย 

The new routes toย Phoenix Sky Harbor International Airportย (PHX)ย include:

  1. Provo, Utahย viaย Provo Airportย (PVU)ย โ€“ beginning Oct. 8, 2021
  2. Stockton, Calif.ย viaย Stockton Metropolitan Airportย (SCK) โ€“ย beginning Oct. 15, 2021

The new route toย Phoenix-Mesa Gateway Airportย (AZA):

  1. Pittsburgh, Penn.ย viaย Pittsburgh International Airportย (PIT)ย โ€“ beginning Aug. 19, 2021

The new routes to St. Petersburg-Clearwater International Airport (PIE) include:

  1. Bentonville, Ark.ย viaย Northwest Arkansas National Airportย (XNA)ย โ€“ beginning July 2, 2021
  2. Provo, Utahย viaย Provo Airportย (PVU)ย โ€“ beginning Oct. 7, 2021

The new route toย Fort Lauderdale-Hollywood International Airportย (FLL):

  1. Bentonville, Ark.ย viaย Northwest Arkansas National Airportย (XNA)ย โ€“ beginning Oct. 8, 2021

Top Copyright Photo: Allegiant Air Airbus A320-216 N273NV (msn 3076) LAX (Michael B. Ing). Image: 945314.

Allegiant Air aircraft slide show:

Terminal move sets the stage for Allegiant’s LAX expansion on May 19

Ex EI-DSD, delivered on January 11, 2018

Allegiant Travel Company (Allegiant Air) is setting the stage for its next phase of growth at Los Angeles International Airport (LAX). The Las Vegas-based airline, which has served LAX since 2009, will relocate its operations to Terminal 1 and the new, state-of-the-art West Gates at Tom Bradley. Allegiant will begin service from its new LAX location on Wednesday, May 19.

The move affords the leisure travel-focused carrier opportunity to offer even more of the affordable, nonstop flights which are its hallmark. Anticipating the busy summer travel season, Allegiant will increase its capacity inย Southern Californiaย by locating a fourth Airbus A320 aircraft at LAX.ย Los Angelesย has been a full-time base for Allegiant aircraft and crew since 2016.ย 

Allegiant’s all-nonstop network is unique amongย U.S.-based airlines, focused on bringing leisure travelers from small-to-medium sized cities to premier vacation destinations with convenient local access and affordable fares. Allegiant customers reach the people and places that matter most without the extra time and hassle of stops, connections and layovers.

Photo: LAX.

Allegiant currently serves 33 cities in 21 states from LAX, including new service toย Indianapolis, Ind.ย beginningย May 28; toย Omaha, Neb.ย andย Rapid City, S.D.ย beginningย June 4; and toย Shreveport, La.ย Beginningย July 2.ย  More than half the cities Allegiant serves from LAX are unique to the airline. Since starting service in 2009, Allegiant has flown more than 4.2 million passengers through LAX.

Top Copyright Photo: Allegiant Air Airbus A320-216 N273NV (msn 3076) LAX (Michael B. Ing). Image: 945314.

Allegiant Air aircraft slide show:

Allegiant is hiring 184 pilots in response to increasing travel demand

Allegiant Air plans to hire 184 pilots in the coming months, a nearly 19 percent increase to the company’s current roster of approximately 1,000 pilots.

The new hires are part of the company’s growth strategy to meet increasing demand for air travel. The first group of pilots will begin training in July, with classes scheduled to run every few weeks through early 2022.

As states have eased pandemic restrictions and the COVID-19 vaccine has rolled out across the country, demand for travel has rebounded. Allegiant, which focuses on linking travelers in small-to-medium cities to world-class leisure destinations, was the first domestic carrier to restore capacity to pre-pandemic levels.

Allegiant loses $57.9 million in the first quarter

Allegiant Air Airbus A319-111 N319NV (msn 2503) LAX (Michael B. Ing). Image: 948907.

Allegiant Travel Company (Allegiant Air) today reported the following financial results for the first quarter 2021, as well as comparisons to the prior years:

Consolidated Three Months Endedย March 31, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Total operating revenue $ 279.1 $ 409.2 $ 451.6 (31.8) (38.2)
Total operating expense 254.5 527.0 360.5 (51.7) (29.4)
Operating income (loss) 24.6 (117.8) 91.1 120.9 (73.0)
Income (loss) before income taxes 8.7 (130.7) 73.9 106.6 (88.3)
Net income (loss) 6.9 (33.0) 57.1 120.8 (88.0)
Diluted earnings (loss) per share $ 0.42 $ (2.08) $ 3.52 120.2 (88.1)
Consolidated – adjusted Three Months Endedย March 31, Percent Change
(unaudited) (in millions, except per share amounts) 2021 2020 2019 YoY Yo2Y
Adjusted operating income (loss)ย (1) (2) $ (59.0) $ 55.1 $ 91.1 (207.1) (164.8)
Adjusted operating expenseย (1) (2) 338.1 360.9 360.5 (6.3) (6.2)
Adjusted income (loss) before income taxesย (1) (2) (74.9) 42.2 73.9 (277.5) (201.4)
Adjusted net income (loss)ย (1) (2) (57.9) 32.5 57.1 (278.2) (201.4)
Adjusted diluted earnings (loss) per shareย (1) (2) $ (3.58) $ 2.05 $ 3.52 (274.6) (201.7)
(1) Adjusted excludes COVID related special charges and the net benefit from the Payroll Support Program Extension Agreement (the “PSP2”)
(2) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information

 

“The momentum reported last quarter picked up in earnest towards the back half of the first quarter with booking trends showing meaningful improvement,” statedย Maurice J. Gallagher, Jr., chairman and CEO ofย Allegiant Travel Company. “We completed the quarter with earnings per share ofย $0.42ย on year over two-year revenue declines of 38.2 percent, continuing the trend of sequential revenue improvement. We were the first domestic carrier to restore capacity to pre-pandemic levels, with first quarter scheduled capacity up 3.1 percent as compared to 2019. Booking trends have been particularly impressive with average daily bookings for the months of March and April exceeding the same time period in 2019. Furthermore, the booking curve appears to be normalizing and more closely resembling what we saw in 2019. April’s results came in as strong as March helped by a ten-point increase in load factor from 54 to 64 percent. We expect capacity in the coming months will be equal to or greater than our 2019 levels.

“During the past year, in the face of this terrible pandemic, we were focused on improving ourselves. I believe we have done that. We have improved our cost structure substantially. Our balance sheet is in excellent shape. As ofย March 31, our net debt has decreased. Our cash balances have increased, and by the end of the second quarter we expect to have total liquidity ofย $1 billion, or more than double our year-end 2019 balance. We were able to double our cash balances without an equity raise or substantial increases in debt. We benefited from the payroll support programs as well as federal income tax refunds of the substantial tax payments made in the past years. Our shareholders have seen their company’s balance sheet improve dramatically – perhaps more than any other company in this space – in spite of the setbacks and hardships imposed by this unprecedented event.

“I could not be more bullish on our outlook. Going forward our full-year, 2021 capacity should exceed 2019 capacity levels. We expect sequential scheduled service revenue improvement with revenue down just six to ten percent as compared with 2019 levels. This revenue growth should continue through the remainder of 2021. We continue to separate ourselves from the competition, operating more capacity and generating positive EBITDA and earnings. I believe now more than ever our low-cost, low-utilization model designed to provide affordable leisure travel is our competitive advantage, which will help drive us towards returning to our goal ofย $6 millionย in EBITDA per aircraft.

“We would not be in the favorable position we are today without the continued efforts of the 4,000 employees throughout our network. Their hard work has been integral to successfully navigating the most difficult year in the industry’s history. It is their efforts that have enabled us to effectively manage capacity while cutting costs from the business – both critical components to ensuring a sustained return to profitability.”

First Quarter 2021 Results

  • GAAPย earnings per shareย ofย $0.42
    • Adjusted loss per share(1) (2)ย ofย $3.58,ย adjusted numbers exclude the impact from PSP2 andย $1.7 millionย of COVID related special charges
  • Consolidated EBITDA(2)ย ofย $68.2 millionย yielding an EBITDA margin of 24.4 percent
    • Adjusted EBITDA(1) (2)ย ofย $(15.4) million
  • Restored capacity to pre-pandemic levels withย scheduled service capacityย up 3.1 percent versus first quarter of 2019
  • Total revenueย for the quarter wasย $279.1 million, up 13.2 percent from the fourth quarter
    • Includesย fixed fee revenueย ofย $7.7 million, the strongest quarter since the onset of the pandemic
    • Total average fare wasย $116.35, down 8.9 percent as compared to 2019, with third party product average fare ofย $5.86, up 17.0 percent year over two-year
  • Adjusted operating expense(1) (2)ย ofย $338.1 million, down 6.3 percent from first quarter 2019 on total system capacity increase of 2.7 percent
    • Adjusted Operating CASM, excluding fuel(1)(2)ย ofย 6.36 cents, down 4.6 percent from first quarter of 2019
  • Announced the addition of aย new base inย Austin,ย Texas, beginning base operations inย November 2021, which is expected to create 89 high-wage jobs and house three A320 aircraft
  • Expanded the networkย by adding 50 new routes, three new cities, and nine event-specific routes, bringing total routes served to 580 and 129 cities
  • Included on Forbes’ list ofย America’s Best Employers for Diversityย in 2021
  • Partnered withย The Smith Center for the Performing Artsย as a sponsor of the annual Heart of Education Awards honoring outstanding teachers inย Southern Nevadaย by awarding travel vouchers to more than 700 teachers

(1) Adjusted excludes COVID related special charges and the net benefit from the Payroll Support Program Extension Agreement (the “PSP2”)
(2) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information

Balance Sheet, Cash and Liquidity

  • Totalย cash and investmentsย atย March 31, 2021ย wereย $728 million, up fromย $685 millionย atย December 31, 2020
    • Cash from operationsย ofย $168 millionย including the benefit from the payroll support program
      • Adjusted cash from operations ofย $68.2 million, which excludes theย $91.8 millionย benefit from the PSP2 as well as excludesย $8 millionย related to restricted cash balances
    • Receivedย $105 millionย in debt proceeds
      • Net proceeds received ofย $50.2 millionย due to refinance of three A320 aircraft
    • Debtย principal payments ofย $152 millionย during the quarter
      • Includes repayment of existing debt on three aircraft as well as repayment of existing revolver as the facility matured during the first quarter
      • Entered into a new securedย revolving credit facility with aย $50 millionย commitment, which is currentlyย undrawn
    • $69 millionย used for cashย capital expendituresย during the first quarter withย $13 millionย related to 2020 accrued capital expenditures
  • First quarterย interest expenseย ofย $16.8 million, down 7.5 percent from first quarter in the prior year
      • Increased full year interest expense guide driven primarily by A320 refinance arrangement and an increase in LIBOR
  • Second quarter sources of liquidityย expected to be received areย $260.9 million
    • $112.2 millionย from theย U.S.ย Treasuryย of whichย $13.8 millionย is related to the PSP2 andย $98.4 millionย is related to Payroll Support Program 3 Agreement (the “PSP3”)
      • Additional PSP2 funds triggered aย $1.7 millionย loan and issuance of 924 warrants at a strike price ofย $179.23
    • $148.7 millionย in tax refunds related to net operating losses
  • Air traffic liabilityย atย March 31, 2021ย wasย $403 million, compared toย $308 millionย atย December 31, 2020
    • Balance related to future scheduled flights isย $224 million, up fromย $86 millionย onย December 31, 2020
    • Balance related to travel vouchers issued for future use isย $179 million, a 19 percent reduction fromย December 31, 2020

Capital Expenditures

  • First quarterย capital expendituresย related to aircraft, engines and induction costs wereย $56 million, which includedย $50 millionย for the acquisition of three aircraft and induction costs, andย $6 millionย in other airline capital expenditures
  • First quarter capital expenditures related toย deferred heavy maintenanceย wereย $8.5 million

 

Guidance, subject to revision Previous Current
Second Quarter 2021 guidance
System ASMs – year over two-year change(1) 2.0 to 6.0%
Scheduled Serviceย  ASMs – year over two-year change(1) 2.0 to 6.0%
Scheduled serviceย  revenue – year over two-year change, excluding fixed fee and other revenue(1) down 6 to 10%
Fuel cost per gallon $ 1.99
Full year 2021 guidance
CAPEX
Aircraft, engines and induction costs (millions) $115ย toย $125 $115ย toย $125
Capitalized Airbus deferred heavy maintenance (millions) $50ย toย $60 $50ย toย $60
Other capital expenditures (millions) $20ย toย $30 $40ย toย $50
Interest expense $50ย toย $55 $65ย toย $70
Recurring principal payments(2) $170ย toย $180 $170ย toย $180
(1) Year over two-year percentage changes compare 2021 to 2019
(2) Excludesย $111 millionย of principal repayments related to the maturity of our revolving credit facility and the refinancing of three A320 aircraft during the first quarter 2021

Aircraft Fleet Plan by End of Period

Aircraft – (seats per AC)ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย  1Q21 2Q21 3Q21 YE21
A319 (156 seats) 35 35 35 35
A320 (177 seats) 26 21 21 19
A320 (186 seats) 39 49 52 54
Total 100 105 108 108
The table above is provided based on the company’s current plans and may be subject to change

Top Copyright Photo: Allegiant Air Airbus A319-111 N319NV (msn 2503) LAX (Michael B. Ing). Image: 948907.

Allegiant aircraft slide show:

Allegiant announces its first agreement with the Teamsters

Allegiant Air Airbus A320-214 WL N252NV (msn 7868) BFI (Nick Dean). Image: 949885.

Allegiant Air today announced that the company and the International Brotherhood of Teamsters (IBT), representing Allegiant’s workforce of maintenance technician and related employees, have reached an agreement in principle on all remaining open issues for the first collective bargaining agreement between the parties. The agreement in principle is subject to finalization between the parties and ratification by the employee group, which includes line and heavy maintenance technicians as well as stores employees and some administrative maintenance staff. ย A ratification vote is expected to occur by the end of July, 2021. Allegiant currently employs 415 maintenance technician and related employees.

The process of negotiating a first collective bargaining agreement for Allegiant maintenance technician and related employees began inย January 2019. The parties had temporarily suspended negotiations early in 2020 due to the COVID-19 pandemic, but talks resumed in September.ย  Theย International Brotherhood of Teamstersย was most recently certified as the group’s exclusive representative onย March 7, 2018.

Top Copyright Photo: Allegiant Air Airbus A320-214 WL N252NV (msn 7868) BFI (Nick Dean). Image: 949885.

Allegiant Air aircraft slide show: